The U.S. Treasury Saves with Cashless ProgramWalt Henderson | December 20, 2011
Earlier this year, we announced the retirement of the paper check in favor of electronic commerce, whereby Social Security recipients and others now choose either direct deposit or sign up for a prepaid debit card.
While the prepaid option can be for anyone, a significant number of federal benefit recipients are either unbanked or underserved. It is our job to provide their payment in a safe and secure manner, and why we created the Direct Express debit card program.
When MasterCard asked me to author this post, I expressed I am always happy to talk about electronic commerce. This program not only provides great value to Americans who receive benefits, but it’s also saving an estimated $120 million in taxpayer dollars each year. It costs $1 for every paper check issued versus, 10 cents for an electronic transfer. I discuss these savings and benefits in more detail in the video below.
If you’re already using or interested in trying out the Direct Express program, we’re curious to hear directly from you! Please share your feedback or questions with us.
Walt Henderson is a guest blogger and the director of the EFT Strategy Division at the Department of the Treasury’s Financial Management Service.